2020 has no doubt been a year of unease, not only for individuals, but also for the economy. The government, with schemes in place, are doing what they can to stabilise and calm the waters. Such schemes have included the stamp duty holiday and mortgage breaks. With an ease on the pockets of homeowners, could now be the right time to buy?
The short term forecast
The obvious answer to the question ‘would now be the right time to buy?’ is simply, no. The country is going through the unknown. Such a year could not have been predicted, and if it has taught us one thing, its to not be hasty in our decision making. However, according to the figures released by Knight Frank, the general public would not agree. Not only have the number of mortgage approvals increased from August to September, but The Bank of England has stated that September 2020 saw the highest number of approvals since September 2017.
For those looking in through the window, questions may arise as to why people are making such decisions, and will this surge last? Buying a house is not an off the cuff decision, but one that has been thought about and the risks associated have been analysed. Almost two-thirds of sales from August and September were instructed for sale before May. Decisions had already been made prior to the turbulence of Summer 2020.
With decisions made prior, and the introduction of cost reductions, those teetering on the edge have been swayed by the short term saving potential.
The long term forecast
The long term forecast is now more than ever a difficult one to predict. 2020 has shown that anything can happen. One thing is most definitely for certain, if the serge continues, housing prices will increase as a result. As the demand increases, as does the valuation price. This however could plateau, as demand does. Every mountain has its peak.
For the future, predictions are hard to say. However, after a disastrous 2nd quarter for the housing market, there seems to be some gold at the end of the rainbow, let’s just hope it stays!
Buying or renovating a property or larger development project can be daunting for those unsure of the process. Nevill Developments is on hand to aid and guide developers throughout their development process, easing the owes and helping to make the right financial decisions.
Not only do Nevill Developments assist those wanting to invest or develop, but they also sell completed projects, visit the Nevill Developments website today to view the current properties for sale.